BILL NUMBER: AB 2755	CHAPTERED  09/20/00

	CHAPTER   556
	FILED WITH SECRETARY OF STATE   SEPTEMBER 20, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 18, 2000
	PASSED THE ASSEMBLY   AUGUST 22, 2000
	PASSED THE SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   JUNE 28, 2000
	AMENDED IN ASSEMBLY   MAY 15, 2000
	AMENDED IN ASSEMBLY   MAY 8, 2000
	AMENDED IN ASSEMBLY   MAY 4, 2000

INTRODUCED BY   Assembly Member Bock

                        FEBRUARY 25, 2000

   An act to amend Section 65915 of the Government Code, relating to
housing.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2755, Bock.  Housing:  rehabilitation.
   (1) Existing law contains various building code requirements
applicable to the construction of residential structures, and various
provisions relating to affordable housing.
   Under existing law, when a developer of housing proposes a housing
development, as defined, within the jurisdiction of a local
government, the city, county, or city and county is required to
provide the developer incentives for the production of lower income
housing units within the development if the developer meets specified
requirements, and to adopt an ordinance that specifies the method of
providing developer incentives.
   This bill would include in the definition of a housing development
for purposes of the above provision, a project to substantially
rehabilitate and convert a commercial building to residential use or
the substantial rehabilitation of a multifamily dwelling that would
increase the number of units.  The bill would create a state-mandated
local program by imposing new duties on local agencies by subjecting
additional projects to existing requirements.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 65915 of the Government Code is amended to
read:
   65915.  (a) When a developer of housing proposes a housing
development within the jurisdiction of the local government, the
city, county, or city and county shall provide the developer
incentives for the production of lower income housing units within
the development if the developer meets the requirements set forth in
subdivisions (b) and (c).  The city, county, or city and county shall
adopt an ordinance that shall specify the method of providing
developer incentives.
   (b) When a developer of housing agrees or proposes to construct at
least (1) 20 percent of the total units of a housing development for
lower income households, as defined in Section 50079.5 of the Health
and Safety Code, or (2) 10 percent of the total units of a housing
development for very low income households, as defined in Section
50105 of the Health and Safety Code, or (3) 50 percent of the total
dwelling units of a housing development for qualifying residents, as
defined in Section 51.3 of the Civil Code, a city, county, or city
and county shall either (1) grant a density bonus and at least one of
the concessions or incentives identified in subdivision (h) unless
the city, county, or city and county makes a written finding that the
additional concession or incentive is not required in order to
provide for affordable housing costs, as defined in Section 50052.5
of the Health and Safety Code, or for rents for the targeted units to
be set as specified in subdivision (c), or (2) provide other
incentives of equivalent financial value based upon the land cost per
dwelling unit.
   (c) A developer shall agree to and the city, county, or city and
county shall ensure continued affordability of all lower income
density bonus units for 30 years or a longer period of time if
required by the construction or mortgage financing assistance
program, mortgage insurance program, or rental subsidy program.
Those units targeted for lower income households, as defined in
Section 50079.5 of the Health and Safety Code, shall be affordable at
a rent that does not exceed 30 percent of 60 percent of area median
income.  Those units targeted for very low income households, as
defined in Section 50105 of the Health and Safety Code, shall be
affordable at a rent that does not exceed 30 percent of 50 percent of
area median income.  If a city, county, or city and county does not
grant at least one additional concession or incentive pursuant to
paragraph (1) of subdivision (b), the developer shall agree to and
the city, county, or city and county shall ensure continued
affordability for 10 years of all lower income housing units
receiving a density bonus.
   (d) A developer may submit to a city, county, or city and county a
preliminary proposal for the development of housing pursuant to this
section prior to the submittal of any formal requests for general
plan amendments, zoning amendments, or subdivision map approvals.
The city, county, or city and county shall, within 90 days of receipt
of a written proposal, notify the housing developer in writing of
the procedures under which it will comply with this section.  The
city, county, or city and county shall establish procedures for
carrying out this section, which shall include legislative body
approval of the means of compliance with this section.  The city,
county, or city and county shall also establish procedures for
waiving or modifying development and zoning standards that would
otherwise inhibit the utilization of the density bonus on specific
sites.  These procedures shall include, but not be limited to, such
items as minimum lot size, side yard setbacks, and placement of
public works improvements.
   (e) The housing developer shall show that the waiver or
modification is necessary to make the housing units economically
feasible.
   (f) For the purposes of this chapter, "density bonus" means a
density increase of at least 25 percent, unless a lesser percentage
is elected by the developer, over the otherwise maximum allowable
residential density under the applicable zoning ordinance and land
use element of the general plan as of the date of application by the
developer to the city, county, or city and county.  The granting of a
density bonus shall not be interpreted, in and of itself, to require
a general plan amendment, zoning change, or other discretionary
approval.  The density bonus shall not be included when determining
the number of housing units which is equal to 10 or 20 percent of the
total.  The density bonus shall apply to housing developments
consisting of five or more dwelling units.
   (g) "Housing development," as used in this section, means one or
more groups of projects for residential units constructed in the
planned development of a city, county, or city and county.  For the
purposes of this section, "housing development" also includes either
(1) a project to substantially rehabilitate and convert an existing
commercial building to residential use, or (2) the substantial
rehabilitation of an existing multifamily dwelling, as defined in
subdivision (d) of Section 65863.4, where the result of the
rehabilitation would be a net increase in available residential
units.  For the purpose of calculating a density bonus, the
residential units do not have to be based upon individual subdivision
maps or parcels.  The density bonus shall be permitted in geographic
areas of the housing development other than the areas where the
units for the lower income households are located.
   (h) For the purposes of this chapter, concession or incentive
means any of the following:
   (1) A reduction in site development standards or a modification of
zoning code requirements or architectural design requirements that
exceed the minimum building standards approved by the California
Building Standards Commission as provided in Part 2.5 (commencing
with Section 18901) of Division 13 of the Health and Safety Code,
including, but not limited to, a reduction in setback and square
footage requirements and in the ratio of vehicular parking spaces
that would otherwise be required.
   (2) Approval of mixed use zoning in conjunction with the housing
project if commercial, office, industrial, or other land uses will
reduce the cost of the housing development and if the commercial,
office, industrial, or other land uses are compatible with the
housing project and the existing or planned development in the area
where the proposed housing project will be located.
   (3) Other regulatory incentives or concessions proposed by the
developer or the city, county, or city and county that result in
identifiable cost reductions.
   This subdivision does not limit or require the provision of direct
financial incentives for the housing development, including the
provision of publicly owned land, by the city, county, or city and
county, or the waiver of fees or dedication requirements.
   (i) If a developer agrees to construct both 20 percent of the
total units for lower income households and 10 percent of the total
units for very low income households, the developer is entitled to
only one density bonus and at least one additional concession or
incentive identified in Section 65913.4 under this section although
the city, city and county, or county may, at its discretion, grant
more than one density bonus.
  SEC. 2.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
